Reaching climate neutrality in Estonia

The report finds that while Estonia's total greenhouse gas emissions fell from 18,687.4 kt CO2e in 2018 to 11,555.8 kt CO2e in 2020, significant gaps remain across all sectors to reach 2050 neutrality. The energy sector shows a positive trend in renewables, but wind capacity investment is lagging. The buildings sector lacks incentives for non-residential renovations, which are identified as highly cost-efficient. The LULUCF sector transitioned from a carbon sink to an emitting sector in 2020. Transport emissions are decreasing, but a modal shift toward public transport and cycling has not been achieved. Agriculture emissions continue to rise slowly, and the sector faces limited reduction potential without impacting food production. The report highlights the contradiction of government support for a new shale oil refinery, which is viewed as a step away from climate neutrality.

• Estonia's total greenhouse gas emissions showed a significant decline between 2018 and 2020, dropping from 18,687.4 kilotons CO2 equivalent to 11,555.8 kt CO2e.
• The energy sector is the largest contributor to emissions, accounting for 81.9% of total emissions (excluding LULUCF) in 2020. While renewable energy shares are increasing, the pace of investment in wind energy must grow to meet the 2030 target of 2640 GWh, up from 760 GWh in 2020.
• In the buildings sector, financial support is heavily concentrated on residential properties, leaving office, industrial, and commercial buildings without stable incentives. This is a critical gap because renovating these non-residential buildings is identified as one of the most cost-efficient ways to reduce CO2.
• The Land use, land-use change and forestry (LULUCF) sector, which historically acted as a carbon sink, became an emitting sector in 2020. The report describes the EU Fit for 55 target of sequestering 2.5 million tonnes of CO2e by 2030 as highly unlikely to be reached.
• The transport sector has the largest emissions reduction potential under the EU Effort Sharing Regulation, but it is struggling with a decline in the share of people walking, cycling, or using public transport, which fell to 34% in 2021.
• Agriculture is the second largest emitting sector, and emissions are rising steadily. The report notes that reducing emissions in this sector is difficult without reducing food production.
• The Estonian government is supporting the construction of a new shale oil refinery projected for 2024 with an investment of EUR 286 million; however, the report identifies this as a negative action that contradicts climate neutrality goals.
• Hydrogen is being positioned as a key element of the green transition, with the government allocating EUR 111 million in early 2022 to support companies in the hydrogen value chain.
• The cement and limestone industries are the primary industrial emitters. While emissions in cement have declined due to the high cost of CO2 allowances making clinker production unprofitable, there is currently no direct government support for the decarbonization of heavy industry.

APA

Kaaret, K., Tool, B., Suik, K., & Kirsimaa, K. (2022). Reaching climate neutrality in Estonia. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2022/07/reaching-climate-neutrality-in-estonia-a-progress-update-report.pdf

Chicago

Kaaret, Kaidi, Brigita Tool, Karina Suik, and Kerli Kirsimaa. Reaching climate neutrality in Estonia. Stockholm Environment Institute, 2022. https://www.sei.org/wp-content/uploads/2022/07/reaching-climate-neutrality-in-estonia-a-progress-update-report.pdf.

Wikipedia

{{cite report |last1=Kaaret |first1=Kaidi |last2=Tool |first2=Brigita |last3=Suik |first3=Karina |last4=Kirsimaa |first4=Kerli |title=Reaching climate neutrality in Estonia |publisher=Stockholm Environment Institute |date=July 2022 |url=https://www.sei.org/wp-content/uploads/2022/07/reaching-climate-neutrality-in-estonia-a-progress-update-report.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kaaret2022reaching, author = {Kaaret, Kaidi and Tool, Brigita and Suik, Karina and Kirsimaa, Kerli}, title = {{Reaching climate neutrality in Estonia}}, institution = {Stockholm Environment Institute}, year = {2022}, month = jul, url = {https://www.sei.org/wp-content/uploads/2022/07/reaching-climate-neutrality-in-estonia-a-progress-update-report.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }